Pantaflix : Half-year report 2023

Stephanie Schettler-Köhler Management Board

In the first half of 2023 we made significant changes and groundbreaking decisions for the PANTAFLIX Group that will take us back to our origins and at the same time make us a pioneer in the field of applying artificial intelligence in the entertainment sector. For us, this means concentrating on our core competencies - those areas in which we have been doing excellent work for years: the production of high-quality films and series in the high-end segment. AI allows us to work far more cost- and time-efficiently on global products.

CREATIVE FILM PROJECTS

In the first half of the 2023 business year, we worked on various exciting projects for viewers. Among them were 791KM, a comedy drama for the cinema starring German film greats Iris Berben and Joachim Król. Theatrical release is scheduled for December of this year. During the reporting period we also completed the eight-part thriller series "UNWANTED", commissioned by Sky Studios Original and directed by Oliver Hirschbiegel, "UNWANTED" will be available on the WOW streaming platform and Sky Q from November 2023.

The comedy TRAUZEUGEN, produced in cooperation with Paramount, made its successful theatrical debut on September 14, 2023. In addition, shooting began in Prague for the anti-war film "TIGER", commissioned by Amazon.

SUCCESSFUL OPERATING RESULTS IN THE

FIRST HALF OF THE YEAR

In the first half of 2023, revenue increased to EUR 21,197 thousand (first half of 2022: EUR 8,804 thousand). Total operating revenue, including other operating income, increased to EUR 21,196 thousand (first half of 2022: EUR 10,011 thousand). EBIT also improved to EUR -734 thousand (first half of 2022: EUR -2,815 thousand). Cash and cash equivalents increased to EUR 17,603 thousand as of June 30, 2023, due to production -related factors and cash capital increases implemented during the half-year under review (December 31, 2022: EUR 15,644 thousand).

HEADING FOR THE CONTENT REVOLUTION

Numerous breakthroughs in the application of artificial intelligence (AI) are opening up interesting possibilities and opportunities for us. This basically includes all the steps in film and series production, from story development and production of moving images to final production of our products, including music and visual effects (VFX). With our subsidiary Storybook Studios, we are active in all these areas. n close coordination with a global network of researchers and film producers, we are making conventional processes much more efficient, which will open up completely new approaches in scalable and larger formats.

ADJUSTED FORECASTS

Our business fared very well during the first half of the year, and the revenue forecast for the 2023 business year therefore remains at between EUR 29.5 million and EUR 33.5 million. Our adjusted forecast for EBIT is between EUR -3.7 million and EUR -3.0 million (previous forecast: EUR -3.7 million to EUR -1.5 million), taking into account the fact that we have halted the negotiations for the sale of PANTAFLIX Technologies.

We would like to take this opportunity to thank our employees for their hard work, creativity and commitment to our compa- ny. Special recognition is owed to Nicolas Paalzow, former CEO and Chairman of the Management Board of PANTAFLIX AG, who resigned from his position by mutual agreement as of June 30, 2023, as part of our concentration of business activities on film and series productions.

We would like to thank our valued shareholders for the trust you have placed in us. Your investment and trust enable PANTAFLIX to unleash creativity and actively shape the film and entertainment world. We are pushing firmly ahead with the implementation of the new PANTAFLIX strategy, to open up further avenues of growth for our company.

Best wishes,

Stephanie Schettler-Köhler

Management Board